- Bed Bath & Beyond Inc (NASDAQ: BBBY) reported first-quarter FY21 sales of $1.95 billion, up 49% year-on-year, beating the consensus estimate of $1.87 billion.
- Core Sales grew 73%; Comparable Sales rose 86% Y/Y.
- Sales were driven by growth in its key destination categories, which include Bedding, Bath, Kitchen Food Prep, Indoor Decor, and Home Organization.
- Adjusted gross margin increased 820 basis points to 34.9%.
- Adjusted EBITDA was $86 million.
- Adjusted EPS of $0.05 missed the consensus of $0.08.
- The company used $28.7 million in operating cash flow and ended the quarter with cash and equivalents of $1.2 billion.
- Guidance: BBBY raised FY21 sales guidance to $8.2 billion-$8.4 billion from $8 billion-$8.2 billion earlier, versus a consensus of $8.15 billion.
- It hiked adjusted EBITDA outlook to $520 million-$540 million from $500 million- $525 million earlier.
- Bed Bath sees Q2 EPS of $0.48-$0.55 versus the consensus estimate of $0.52.
- “For the first quarter, we delivered our fourth consecutive quarter of comparable sales growth with gross margin expansion exceeding our expectations,” said Mark Tritton, Chief Executive Officer.
- Price action: BBBY shares are trading higher by 17.1% at $35.02 on the last check Wednesday.
- Photo by Tesa Robbins from Pixabay
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